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Short-term and long-term debt | 12 Months Ended
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Dec. 31, 2012
Debt Disclosure [Abstract] |
Short-term and long-term debt | Note 7 - Short-term and long-term debt Elements of short-term and long-term debt are as follows:
December 31, |  | 2012 |  |  | 2011 |
(in thousands) |  |  |  |  |  |
Short-term & long-term debt |  |  |  |  |  |  |  |
Short-term debt: |  |  |  |  |  |  |  |
- Bank credit line |  | $ | 12,451 |  |  | $ | 2,843 |
- Long-term debt: current |  |  | 285 |  |  |  | 3,518 |
Subtotal |  |  | 12,736 |  |  |  | 6,361 |
Long-term debt: |  |  |  |  |  |  |  |
- Bank credit line |  |  | 4,000 |  |  |  | 2,500 |
- Building and land mortgage |  |  | 764 |  |  |  | 903 |
- Vehicle and equipment loans |  |  | 327 |  |  |  | 114 |
- Capital lease obligations |  |  | 114 |  |  |  | 122 |
- Less: current maturities |  |  | (285 | ) |  |  | (3,518 | )
Subtotal |  |  | 4,920 |  |  |  | 121 |
Total short-term & long-term debt |  | $ | 17,656 |  |  | $ | 6,482 |
Bank Credit Line On June 22, 2012, a subsidiary of Hudson entered into a Revolving Credit, Term Loan and Security Agreement (the “PNC Facility”) with PNC Bank, National Association, as agent (“Agent” or “PNC”), and such other lenders as may thereafter become a party to the PNC Facility. Under the terms of the PNC Facility, Hudson could initially borrow up to $27,000,000 consisting of a term loan in the principal amount of $4,000,000 and revolving loans in a maximum amount up to the lesser of $23,000,000 and a borrowing base that is calculated based on the outstanding amount of Hudson’s eligible receivables and eligible inventory, as described in the PNC Facility. Amounts borrowed under the PNC Facility may be used by Hudson for working capital needs and to reimburse drawings under letters of credit. On the closing date of the PNC Facility, Hudson borrowed $9,548,000 which was used by Hudson to repay all amounts outstanding under the prior credit facility with Keltic Financial Partners, LP (“Keltic”) and to pay fees and expenses relating to the PNC Facility of approximately $245,000 which is being amortized over the life of the loan. At December 31, 2012, total borrowings under the PNC Facility were $16,451,000, and there was $10,357,000 available to borrow under the revolving line of credit. The effective interest rate under the PNC Facility was 4% at December 31, 2012. On February 15, 2013 the PNC Facility was amended. As a result of this amendment, Hudson may borrow up to a maximum of $40,000,000 consisting of a term loan in the principal amount of $4,000,000 and revolving loans in a maximum amount up to $36,000,000. Interest on loans under the PNC Facility is payable in arrears on the first day of each month with respect to loans bearing interest at the domestic rate (as set forth in the PNC Facility) and at the end of each interest period with respect to loans bearing interest at the Eurodollar rate (as set forth in the PNC Facility) or, for Eurodollar rate loans with an interest period in excess of three months, at the earlier of (a) each three months from the commencement of such Eurodollar rate loan or (b) the end of the interest period. Interest charges with respect to loans are computed on the actual principal amount of loans outstanding during the month at a rate per annum equal to (A) with respect to domestic rate loans, the sum of (i) a rate per annum equal to the higher of (1) the base commercial lending rate of PNC, (2) the federal funds open rate plus .5% and (3) the daily LIBOR plus 1%, plus (ii) .5% and (B) with respect to Eurodollar rate loans, the sum of the Eurodollar rate plus 2.25%. Hudson granted to PNC, for itself, and as agent for such other lenders as may thereafter become a lender under the PNC Facility, a security interest in Hudson’s receivables, intellectual property, general intangibles, inventory and certain other assets. The PNC Facility contains certain financial and non-financial covenants relating to Hudson, including limitations on Hudson’s ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control. As of December 31, 2012, the Company was in compliance with all covenants in the PNC Facility. The commitments under the PNC Facility will expire and the full outstanding principal amount of the loans, together with accrued and unpaid interest, are due and payable in full on June 22, 2015, unless the commitments are terminated and the outstanding principal amount of the loans are accelerated sooner following an event of default. Building and Land Mortgage On June 1, 2012, the Company entered into a mortgage note with Busey Bank for $855,000. The note bears interest at the fixed rate of 4% per annum, amortizing over 60 months and maturing on June 1, 2017. The mortgage note is secured by the Company’s land and building located in Champaign, Illinois. At December 31, 2012 the principal balance of this mortgage note was $764,000. Vehicle and Equipment Loans The Company had entered into various vehicle and equipment loans. These loans are payable in 60 monthly payments through March 2017 and bear interest from 2.9% to 8.7%. Scheduled maturities of the Company's long-term debt and capital lease obligations are as follows:
Years ended December 31, |  | Amount |
(in thousands) |  |  |
- 2013 |  | $ | 285 |
- 2014 |  |  | 290 |
- 2015 |  |  | 4,267 |
- 2016 |  |  | 257 |
- 2017 |  |  | 106 |
Total |  | $ | 5,205 |
Capital Lease Obligations The Company rents certain equipment with a net book value of approximately $128,000 at December 31, 2012 under leases which have been classified as capital leases. Scheduled future minimum lease payments under capital leases net of interest are as follows:
Years ended December 31, |  | Amount |
(in thousands) |  |  |
- 2013 |  | $ | 59 |
- 2014 |  |  | 36 |
- 2015 |  |  | 22 |
- 2016 |  |  | 6 |
|  |  | 123 |
Less Interest expense |  |  | (9 | )
Total |  | $ | 114 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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